Kazakhstan Aims to Expand Rare Metals Production with EU Support
Kazakhstan is positioning itself to play a greater role in global production of rare and rare earth metals, drawing interest from the European Union (EU) as both parties explore potential partnerships. To maximize collaboration, experts suggest that Europe must align its green energy diplomacy with Kazakhstan's local needs.
A recent government meeting, led by Kazakh Prime Minister Oljas Bektenov on November 13, addressed strategies to strengthen Kazakhstan's position in the global market, attract investment and technology, and integrate into new economic sectors. Kazakhstan is home to world-class facilities for producing metals such as beryllium, scandium, tantalum, and niobium, alongside production capabilities for bismuth, antimony, selenium, gallium, and indium.
Efforts are already underway to expand the country's metal production. The Boguty deposit began tungsten concentrate production with a $350 million investment, and additional plans include developing tungsten ores, producing ammonium paratungstate, and establishing a magnet production cluster. Kazakhstan also covers 5% of the global manganese sulphate monohydrate market, and aims to boost production of battery materials, permanent magnets, and heat-resistant alloys.
The Sarytogan deposit has been targeted for graphite concentrate production, with €3 million invested by the European Bank for Reconstruction and Development (EBRD) in what is its first direct equity investment in the critical raw materials sector in Central Asia. Additionally, German and Korean companies are actively exploring lithium deposits in East Kazakhstan, while the country looks to develop production capabilities for nickel-based heat-resistant alloys.
Kazakh President Kassym-Jomart Tokayev has underscored the nation’s potential in producing rare metals during his recent visit to France, pointing out Kazakhstan's extensive deposits of lithium, beryllium, and tantalum—crucial components for high-tech and green industries. In total, Kazakhstan has identified 124 deposits of rare and rare earth metals, although only 37 have been explored so far.
To strengthen ties, the EU and Kazakhstan signed a Memorandum of Understanding in November 2022, establishing a strategic partnership on sustainable raw materials, batteries, and renewable hydrogen value chains. Both parties reiterated their commitment to critical raw material cooperation during a Cooperation Council meeting in mid-October 2024.
However, experts argue that the EU must move quickly to deepen collaboration, especially as Kazakhstan has already initiated a joint venture with the United States to explore the Akbulak deposit in the Kostanay region. The deposit is believed to contain significant reserves of rare earth elements. Moreover, with China currently leading global production—accounting for 60% of output and 90% of processing—the EU sees Kazakhstan as a potential partner to diversify away from dependence on China's dominance.
The International Energy Agency (IEA) describes Kazakhstan as a leader in Central Asia for clean energy innovation, though challenges remain. A policy brief by Clingendael, the Netherlands Institute of International Relations, encourages the EU to collaborate with Kazakhstan in creating added value through local production, rather than simply exporting raw materials. The brief suggests that the EU should support Kazakhstan's development of a domestic clean energy industry, contributing to both energy security and sustainable growth.
To further these efforts, the EU must prioritize investment in Kazakhstan’s renewable energy sector while phasing out oil and gas projects, thereby reducing dependency on fossil fuels and supporting economic diversification. If successful, Kazakhstan could potentially become a leading global producer of critical raw materials and serve as a counterweight to China’s near-monopoly in the market.
